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<a href="https://bitcoinworld.co.in/dont-be-overconfident-about-spot-bitcoin-etfs-going-live-in-hong-kong-analyst/" title="Don’t Be Overconfident About Spot Bitcoin ETFs Going Live In Hong Kong: Analyst" rel="noopener noreferrer nofollow"></a>
On April 15, Hong Kong took a significant step towards becoming a crypto hub after approving the first spot Bitcoin and Ethereum exchange-traded funds (ETFs).&nbsp;
However, an ETF analyst, Eric Balchunas, is pouring cold water on the excitement palpable across the crypto scene.&nbsp;
<h3 id="span-style-font-weight-400-spot-bitcoin-etf-is-live-in-hong-kong-span">Spot Bitcoin ETF Is Live In Hong Kong</h3>
Taking to <a href="https://twitter.com/EricBalchunas/status/1779867078603718970" rel="noopener noreferrer nofollow">X</a>, Balchunas is warning investors to be especially cautious about expecting a major influx of capital, especially into the spot Bitcoin ETF, as was first witnessed in the United States early this year.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Latest on HK spot Bitcoin ETFs: They have been approved to exist but not launch (yet). Rumor has it launching next wk so to not compete w Dubai conf. Don't expect a lot of flows (I saw one estimate of $25b that's insane). We think they'll be lucky to get $500m. Here's why: 1. HK…
 — Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1779867078603718970?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 15, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In the analyst’s preview, spot ETFs in Hong Kong, while welcomed, might not be a game-changer some anticipate.&nbsp;
Among the leading reasons these products will not significantly impact the market is the relatively small size of the Hong Kong ETF market, estimated to be around $50 billion.&nbsp;
Though Chinese mainland investors have more capital, they are officially restricted from participating.
Additionally, Balchunas has identified possible liquidity concerns and the inefficiency of the city-state’s rails.&nbsp;
See Also: <a class="row-title" href="https://bitcoinworld.co.in/hong-kong-approved-spot-bitcoin-and-ethereum-etfs/" aria-label="“Hong Kong Approved Spot Bitcoin And Ethereum ETFs” (Edit)" rel="noopener noreferrer nofollow">Hong Kong Approved Spot Bitcoin And Ethereum ETFs</a>
Accordingly, the underlying infrastructural hitch might see these products launch with wider bid-ask spreads, unlike those in the United States.&nbsp;
Based on this, and considering the relatively high liquidity and involvement of Wall Street heavyweights like BlackRock and Fidelity, spot ETF issuers in the United States will have an edge.
<h3 id="span-style-font-weight-400-btc-price-remains-under-pressure-china-restricts-participation-span">BTC Price Remains Under Pressure, China Restricts Participation</h3>
So far, multiple applicants, including China Asset Management and Harvest Global Investments, have received approval from the Hong Kong Securities and Futures Commission (SFC) to launch spot Bitcoin and Ethereum ETFs.&nbsp;
These products will likely begin trading in roughly a week.
Before then, BTC prices remained under pressure, as seen in the daily price action chart. The coin is down roughly 12% from all-time highs.&nbsp;
Even so, buyers are in control and dominate from the top-down preview.
According to Coinlore, BTC is up approximately 120% year-to-date, and analysts expect more gains in the weeks after the Halving.
The approval, which came earlier than expected, is when the city-state is actively positioning itself as a leader in crypto, contrasting with mainland China’s stricter stance.&nbsp;
In the mainland, crypto trading, staking, and mining remain banned. However, the government supports emerging technologies, including blockchain and artificial intelligence (AI).&nbsp;
In the past, President Xi Jinping said blockchain was a “critical breakthrough” and advocated for its development.&nbsp;
Pilot programs on applications in digital evidence storage and smart courts have been launched.&nbsp;
At the same time, China is backing the development of the Blockchain Service Network (BSN) to promote secure and controlled adoption.
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 Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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The post <a href="https://bitcoinworld.co.in/dont-be-overconfident-about-spot-bitcoin-etfs-going-live-in-hong-kong-analyst/" rel="noopener noreferrer nofollow">Don’t Be Overconfident About Spot Bitcoin ETFs Going Live In Hong Kong: Analyst</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

Don’t Be Overconfident About Spot Bitcoin ETFs Going Live In Hong Kong: Analyst

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